Legislature(2015 - 2016)SENATE FINANCE 532
03/17/2016 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB170 | |
| SB101 | |
| SB124 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 101 | TELECONFERENCED | |
| + | SB 170 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | SB 124 | TELECONFERENCED | |
SENATE BILL NO. 170
"An Act authorizing the Department of Natural
Resources, division of geological and geophysical
surveys, to collect fees for facilities, equipment,
products, and services; relating to accounting for
certain program receipts; and providing for an
effective date."
9:07:26 AM
SENATOR CATHY GIESSEL, SPONSOR, explained that SB 170 would
make the Department of Natural Resources (DNR) a greater
revenue generator. She presented a core from an oil field
drill. She explained that the Geological Material Center
(GMC) had been located for several decades in Eagle River,
where materials had been stored in conexes (unheated metal
containers) and had been exposed to cold and moisture,
causing deterioration. She relayed that DNR had bought the
Sam's Club building in East Anchorage from Walmart
Corporation several years ago, and that the structure had
been reconfigured as the Geologic Materials Center. She
said that the library of rocks contained in the building
could generate revenue because it was of interest to
exploders. She referred to the document, "FAQs related to
Senate Bill 170"(copy on file). The document contained a
statement from Repsol, and the role of the center in their
recent discovery on the Colville Delta; the GMC had
facilitated in the discovery and exploration of the area,
possibly the largest oil field discovered since Prudhoe
Bay. She related that DNR currently did not have the
authority to charge for use of their facility, the bill was
intended to establish that authority.
9:10:39 AM
Co-Chair MacKinnon looked at Page 1, lines 11 and 13, which
spoke to the printing and publication of reports. She
wondered whether the figure was antiquated, or had digital
imaging been explored as an alternative to publishing and
printing hard copies.
Senator Giessel replied that all of the materials were
available to view online, but that most people liked to
work from actual paper copy maps.
9:11:36 AM
AKIS GIALOPSOS, STAFF, SENATOR CATHY GIESSEL, discussed the
Sectional Analysis (copy on file):
*Section 1. Provides that fees collected by the
Department of Natural Resources (department) under AS
41.08.045, added by bill section 3, will be accounted
for separately and that appropriations from these fees
are not made from the unrestricted general fund.
*Section 2. Conforms AS 41.08.030 to the changes made
to AS 41.08 by section 3 of the bill.
*Section 3. Adds a new section to AS 41.08 permitting
the department's division of geological and
geophysical surveys to charge and collect fees for
facilities, equipment, products, or services that the
division offers. Institutes a fee waiver for students
using the facilities, equipment, products or services
for educational purposes.
*Section 4. Amend uncodified law to permit the
department to adopt regulations necessary to implement
changes made by the Act.
*Section 5. Makes section 4 effective immediately.
*Section 6. Gives sections 1-3 an effective date of
July 1, 2016.
9:14:07 AM
Senator Bishop wondered how the department would arrive at
a fee schedule.
9:14:31 AM
STEVE MASTERMAN, DIRECTOR, DIVISION OF GEOLOGICAL AND
GEOPHYSICAL SURVEYS, DEPARTMENT OF NATURAL RESOURCES
FAIRBANKS (via teleconference), stated that the fee
schedule was currently under evaluation and would be an
amalgam of fees charges in other states. He stated that
they did not want to discourage use by setting fees too
high.
9:15:56 AM
Senator Giessel looked at Page 4 of the aforementioned fact
sheet, which reflected a bar graph illustrating core
repository service fees in other states.
9:16:22 AM
Co-Chair MacKinnon wondered why the word "shall" had been
used instead of "may" on Page 2, line 25 of the bill.
Mr. Gialopsos responded that the division had intended to
promulgate regulations to do the waiver for students. He
furthered that the statutory regulation was intended to
ensure that students using the facilities would still be
able to do so, without the danger of regulations rescinding
themselves.
9:17:26 AM
Vice-Chair Micciche commented that industry would offset
the cost of running the facility, and that the language was
in no way meant to discourage students from using the
facility.
9:17:52 AM
Co-Chair MacKinnon wondered what would keep industry from
using students or interns in order to bypass paying fees
for facility use.
Senator Giessel looked at page 2 of the facts document, and
pointed out that public school groups constituted only 5 to
10 percent of the annual visitors to the facility. She said
that the intention had that elementary, junior high, and
high school classes that might be interested in geological
careers would be able to visit the facility at no charge.
She spoke to Co-Chair MacKinnon's concern that "students"
was a broad term, but she believed that the division was
clear on the intent of the sponsor. She trusted that the
level of student that would be allowed to enter for free
would be clearly defined in regulation.
Co-Chair MacKinnon understood that Senator Giessel viewed
university students and academics differently than the
student intended under the waiver.
Senator Giessel replied that that had been the intention of
the Senate Resources Committee.
9:19:43 AM
Co-Chair MacKinnon though that the language could be more
specific.
9:20:08 AM
Vice-Chair Micciche felt that an intern working under
contract with an industry party would have their fees
covered by the industry employer. He specified that his
intent had been that the facility would be available for
free to individual students who were interested in doing
research in the facility.
9:20:51 AM
Senator Olson queried that amount of anticipated revenue
from the facility.
Senator Giessel deferred to Mr. Masterman.
9:21:15 AM
Co-Chair MacKinnon directed committee attention to the
fiscal note, which reflected that revenue was expected to
increase as usage grew; up to $485 thousand by FY 22.
9:21:54 AM
Mr. Masterman interjected that the fiscal note contained
estimates that were based on the past history of usage and
new services that the facility planned to offer. He said
that the picture would become clearer after the facility
began charging revenue.
9:22:44 AM
Senator Bishop offered support for the legislation.
9:23:28 AM
Vice-Chair Micciche wondered whether the members of
industry could obtain electronic seismic data from the
facility.
Mr. Masterman replied in the affirmative. He said that the
intent was to work with the division to make the seismic
surveys available through the GMC.
9:24:12 AM
Vice-Chair Micciche asked whether it would be the most
valuable data at the center.
Mr. Masterman replied that it was a possibility, and there
was a hope that such valuable information would provide a
significant revenue stream for the facility.
9:24:59 AM
Co-Chair MacKinnon wondered why there the anticipated
revenue did not result in a corresponding drop in the
General Funds reflected in the fiscal note.
Mr. Masterman responded that at this point the revenue was
intended to bring the building into the public building
fund, which had an entry level threshold. He said that
until the GMC revenue reached the threshold to enter the
fund, the revenue generate would enter the General Fund. He
believed that the fiscal note offered further explanation.
Co-Chair MacKinnon OPENED public testimony.
Co-Chair MacKinnon CLOSED public testimony.
9:27:32 AM
AT EASE
9:29:48 AM
RECONVENED
SB 170 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 101 Briefing Paper.pdf |
SFIN 3/17/2016 9:00:00 AM |
SB 101 |
| SB 101 Transmittal Letter.pdf |
SFIN 3/17/2016 9:00:00 AM |
SB 101 |
| SB0170-Explanation of Changes-Version A to Version W.pdf |
SFIN 3/17/2016 9:00:00 AM |
SB 170 |
| SB0170-Sectional Analysis-Version W.pdf |
SFIN 3/17/2016 9:00:00 AM |
SB 170 |
| SB0170-Sponsor Statement.pdf |
SFIN 3/17/2016 9:00:00 AM |
SB 170 |
| SB0170-Supporting Document-FAQs from DNR-DGGS.pdf |
SFIN 3/17/2016 9:00:00 AM |
SB 170 |
| SB0170-Supporting Document-Letter-DNR-DGGS.pdf |
SFIN 3/17/2016 9:00:00 AM |
SB 170 |